Coinbase Custody Ready To Accept $10B Institutional Investors Funds
Coinbase a digital exchange on 16 november through it CEO and co-founder Brian Amstrong announced the launch of a digital currency custodian platform for institutional investors called “Coinbase Custody”.
Over 100 hedge funds have been created in the past year exclusively to trade digital currency. An even greater number of traditional institutional investors are starting to look at trading digital assets (including family offices, sovereign wealth funds, traditional hedge funds, and more). By some estimates there is $10B of institutional money waiting on the sidelines to invest in digital currency today.
According to Coinbase interview on highlighting the major problem why these investors are yet to invest in the digital space it reports;
When we speak with these institutions, they tell us that the number one thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely.
According to coinbase they are designing custody to meet several needs of these institutional investors,these needs includes;
- Strict financial controls (multiple signers, audit trails, limits, etc)
- Dedicated account representatives and phone support
- SLAs on funds transfers
- A regulated digital currency custodian
- Multi-user accounts with separate permissions
- Support for a wide range of digital assets and currencies
- Insurance (in some cases)
- And high levels of cyber and physical security
Fees Associated with Coinbase Custody
Coinbase Custody is only available to institutional investors with a minimum of $10M in deposits.There is an initial setup fee of $100,000 USD, and a fee of 10 basis points per month on assets stored. Note that pricing is subject to change as we continue rolling out early access.
Impact In The Crypto-Community
This move by coinbase will help to dramatically accelerate the flow of institutional money into digital currencies over the coming years.We should be expecting an explosion of the digital currency space.